Air Canada Reports August Traffic

MONTREAL, Sept. 9 /CNW/ - Air Canada flew 0.5 per cent more revenue
passenger miles (RPMs) in August 2002 than in August 2001, according to
preliminary traffic figures. Capacity decreased by 1.3 per cent, resulting in
a load factor of 81.9 per cent, compared to 80.4 per cent in August 2001; an
increase of 1.5 percentage points.

“As a result of strong market demand and our continuing capacity
discipline, the load factor for August was the second highest in Air Canada`s
history as well as the best among major North American carriers. Particularly
gratifying were load factors of 86.3 per cent on Tango and 90.4 per cent on
our service to Asia,” said Rob Peterson, Executive Vice President and Chief
Financial Officer. “Traffic on domestic routes firmed up, while Atlantic and
Pacific results continued their strong upward trend. The US transborder
traffic recorded weaker results as the leisure market to US sun destinations,
buoyant earlier in the year, slowed during the month of August. System revenue
per available seat mile (ASM) is expected to once again show modest
improvement for the second month in the current quarter. Employee and asset
productivity continued to rise sharply as overall seat mile capacity decreased
1.3 per cent while aircraft hours flown were reduced by 8.3 per cent from the
level of August 2001,” said Rob Peterson.

This discussion contains certain forward-looking statements, which
involve a number of risks and uncertainties. As a result of many factors
including acts or potential acts of terrorism, government regulations and
government mandated restrictions on operations and pricing, fuel prices,
industry restructuring, labour negotiations, the economic environment in
general including foreign exchange and interest rates, the airline competitive
and pricing environment, industry capacity decisions and new entrants as well
as external events, actual results could differ from expected results and the
differences could be material.